Desk R Us has the following information reported on its 2013 comparative Balance sheet:

	2012	2013
Net Realizable Value of Accounts Receivable (Net of Allowance for bad debts of $128,740 in 2012 and $202,190 in 2013	$638,260	$882,810

Additional Information:

During 2013, Desk R Us wrote-off $40,000 of accounts that had been specifically identified as uncollectible.

Recovery of amounts previously written-off amounted to $12,000.

Desk R Us makes all sales on account and collected an additional $3,700,000 in cash from other customers in 2013 (in addition to the $12,000 in bad debt recovery).

Desk R Us uses the income statement method to estimate bad debt expense and in both 2013 and 2014, estimates bad debts to be 2.5% of credit sales.

A) What is the amount of Desk R Us' 2013 credit sales?

B) If credit sales during 2014 were $5,000,000 what is the ending balance in the Allowance for Bad Debt account as of December 31, 2014 (after adjusting entries are recorded)

C) Desk R Us factors $400,000 of its accounts receivable with Prudential Bank on a without recourse basis on February 1, 2015. The receivables records are transferred to Prudential Bank, who will receive the collections. Prudential remits 88% of the factored amount to Desk R Us. It retains 10% to cover sales returns and allowances and assesses a financing charge of 2% on the amount of the receivables. Prepare the appropriate journal entry to record this transaction on February 1, 2015 on the books of Desk R Us.